Shares of Roblox fell as much as 7% on Tuesday after a rough overnight for the platform and fresh skepticism from Wall Street.
Outages hit engagement overnight
Roblox users reported widespread service disruptions late Monday into early Tuesday. Downdetector data showed outage reports peaking at roughly 22 per second, suggesting a broad interruption during a key usage window. The company has not detailed the cause, but the timing added pressure to the stock heading into the trading day.
Analyst turns more cautious on growth
TD Cowen lowered its price target on Roblox to $70 from $77 in a note published Tuesday. Analyst Doug Creutz pointed to a sharp slowdown in engagement across some of the platform’s biggest titles, noting that usage for “Grow a Garden” and “Steal a Brainrot” fell 52% between mid-September and mid-December.
The firm also trimmed its full-year bookings forecast to $8.09 billion from $8.48 billion, signaling weaker momentum than previously expected and raising concerns about how durable Roblox’s recent growth trends really are.